The imposition of a 50% rate on Brazilian products, announced by the President of the United States, Donald Trump (Republican Party), can cause significant increases in food prices in the internal market. The projection comes from the Federation of hotels, restaurants and bars of the State of San Paolo (FHORESP), which warns possible raising up to 10% in the cost of food outside the home, if the measure enters into force from 1 August.
The entity considers the decision “catastrophic“And accusations from the Brazilian government a strategic action with the United States government. The goal would be to reverse the policy adopted by the White House and protect the sectors from the national economy, in particular agri -food agro and food outside the house.
Impact of the power rate
According to Fhoresp, the rate should increase the internal demand for foods that are excellent items for exports such as coffee, meat, fish and orange juice. This modification tends to make price costs, since the offer available in the internal market may not be sufficient to satisfy internal consumption.
The Federation Research and Statistics Center states that the entire production chain of these foods will be affected. Coffee, for example, can have a reduction of up to 30% in exports. As a result, the leftovers of the product in Brazil forces a drop in revenue for manufacturers and an increase of up to 6% in the final consumption price. Meat and fish should also record high prices such as a way to balance production costs.
FHORESP’s expectation is that the strongest impacts feel in the medium and long term, directly reaching the food sector outside the home – which represents over 500,000 factories in the State of San Paolo.
The executive director of the entity, Edson PintoStrengthens concern and classifies the measure as a direct blow to agri -food agro. “We have to put all the scenarios at the table, so that Brazil understands what could be to come, even an economic recession. In the medium and long term, the internal market must suffer from impacts throughout the production chain, in particular on the agri -food. Therefore, the Federation defends a diplomatic and strategic action in defense of national interests. We need less stunt and more diplomatic negotiation“He says.
In addition to the pressure on food, the advertising of the supplement has contributed to the high dollar. The American currency has gone from $ 5.40 to $ 5.70 in the last few days. Appreciation makes imports more and increases the costs of products and services that depend on foreign inputs.
Source: Terra
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